Platts seeks feedback on Russian material in Asian 10 ppm sulfur gasoil assessments

Platts, part of S&P Global Commodity Insights, is seeking feedback on whether Russian material is part of the open spot market that Platts reflects in its Asian benchmark 10 ppm gasoil assessments.

Australia, the biggest importer of 10 ppm gasoil in the Asia-Pacific region, has imposed sanctions against the import of Russian-origin hydrocarbons. Platts understands that much of the supply for Australia can originate in the FOB Straits market around Singapore, where a number of companies have been explicitly seeking to exclude Russian-origin product in their spot market trading activity in recent months.

Trade flows in the 10 ppm gasoil market are also expected to change significantly as a result of European sanctions against Russia, with Europe expected to import increased volumes of non-Russian product from Middle Eastern and Asian refiners.

Platts is seeking immediate feedback on whether or not the basis definition of open origin for its Asian 10 ppm gasoil assessments should continue to include Russian-origin material.

Unless otherwise stated, Platts benchmark assessments in these markets currently reflect an open origin basis, which includes potential supply from Russia. All Platts assessments reflect merchantable commodities.

Russian-origin product has already been excluded from Platts benchmark cargo price assessments for naphtha in Asia, while in Europe diesel and other refined products have already excluded Russian-origin material.

Platts 10 ppm gasoil assessments in Asia include FOB cargo markets in Singapore (POABC00,AAOVC00), the Arab Gulf (AAIDT00, POAAT00), Fujairah (AFUJP00, AFUJK00), Japan (POJAP00), South Korea (POAIE00), India (AAQWO00) and China (POAFA00), as well as net-forwards on a delivered basis in Australia (AAQUD00) and South Africa (AAQWU00). Platts is seeking clarity on whether participants in all these markets are adopting a similar stance with regard to Russian-origin material.

Platts also invites feedback on whether the rest of the middle distillate complex, including higher sulfur gasoil grades and jet fuel/kerosene markets, should reflect the same definition of open origin as 10 ppm gasoil.

Please send all feedback, questions or comments to asia_products@spglobal.com and PriceGroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by S&P Global for public viewing. S&P Global will consider all comments received and will make comments not marked as confidential available to the public upon request.